Marin Community Report

Posted by Anastasia Sheldon on Thursday, November 5th, 2015 at 12:38pm.

Is This Market a Bubble?!
I hear this all the time. Short answer: No.

From 2013 to 2014, the market corrected and there were huge run ups as the market regained the lost revenues of the 2006-2012.

Today, most Marin towns have surpassed the high water mark of 2006 and continue to climb, albeit at a much slower rate. Expect to see modest gains over the next 24 months or even some flattening of prices.

But, there is no indication of an imminent price correction thanks to the Bay Area's Disruptive Economy. Low inventory, high rents, and the addition of a train (and possibly a medical tech center in Novato) will add additional pressure on Marin's tight housing stock.

The Disruptive economy is made up of companies that are radically changing the way we do business, conduct our lives, heal and even play etc. A few years ago, it was the Iphone. Now it is robotics, self driving cars, medical break throughs, screen entertainment and non-bank oriented commerce.

These companies tend to drive the Venture capital, employment, and demand for office space (at an all time high right now).

The majority of the largest US disruptive companies are located in the Bay Area: Facebook, Google (self driving car, medical), Apple, Netflix, and Tesla. These companies function somewhat outside of the national and world economies. In fact, their actions and investments steer our economy in part.

We have barely begun to see the transformation that the disruptive economy is going to bring. With it all centering here, in the Bay Area, you can count on continued  limited housing inventory in Marin, increasing need for office space, and a high percentage of cash or high cash offers. (22% are all cash offers).

Foreign investment in residential property is slowing as China takes a much needed pause, but with so much of the world's next break through's happening in our region, our home prices are not likely to go anywhere but up- just more slowly.
 
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Anastasia Sheldon

Direct 415-302-4123

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